XRP, one of the widely-used cryptocurrencies, plummeted by 2.65 percent on Tuesday, June 18th. This decline partially mitigated the previous day’s increase when it had climbed by 3.19 percent and traded at $0.4914 at the close. Despite this, XRP’s value has been swinging as legal advancements and general market conditions have determined this cryptocurrency’s worth.
As for the recent trends in the SEC vs. Ripple case, there were no events that could have possibly inspired investors about the possibility of an outcome. The primary concern of the market was the newer documents produced in support of judicial proceedings.
On Friday, in response to the Notice of Supplemental Authority filed by Ripple, the SEC proposed a penalty that is much lower than the almost $2 billion demanded in their opening brief. This proposal was based on a prior settlement with Terraform Labs. It was significantly lower than the $10 million penalty proposed by Ripple for an alleged breach of U.S. securities laws.
The reaction seemed to fail at offering an alternative solution other than challenging the penalty issued by Ripple. Some in the cryptocurrency community saw this as a compromise figure of $102.6 million due to a remark made by Ripple’s Chief Legal Officer Stuart Alderoty. However, Ripple has not yet responded to the recent submission of the SEC.
Ripple is currently experiencing the risk of a $2 billion fine and an order that might bar them from selling XRP to institutions in the United States. This looming threat, coupled with the SEC’s clear intention to appeal the ruling on Programmatic Sales of XRP, casts even more complications and doubts over the future of this cryptocurrency.
In July of 2023, Judge Analisa Torres received this request from the SEC and subsequently rejected it in addition to denying the request for an Interlocutory Appeal later in October of 2023. The explanations to this ruling established that the sale of XRP did not in any way fall under the third prong of the Howey test, which was a key component of the SEC’s case against Ripple.
The SEC had intended to appeal the above ruling before the end of the case, but with the removal of Judge Torres, they will have to do it after the case is closed. This could potentially put any plans to have an XRP ETF on hold until all the appeals are exhausted.
Some of the factors that led to recent changes in XRP price included general market conditions. While signs of inflation and solid retail sales data could have justified a more conservative approach, most FOMC members were hesitant to cut interest rates immediately. It can be assumed that this lack of distinction played a role in the formation of a pessimistic view of XRP’s performance.
On the technical front, Ripple’s XRP continues to trade below both the 50-day and 200-day Exponential Moving Averages (EMA), which ultimately strengthens the bearish market indications. Such a breakthrough trend line opens the range for XRP to rise to a 50-day EMA and even more. On the other hand, if the price per share falls below $0.48, it might start testing support around the $0.45 level.
Thus, carefully tracking the developments in legal cases against XRP and changes to the market situation will remain critically important for the further evolution of the coin in both the short and long term.
Source: https://www.cryptonewsz.com/ripples-legal-woes-and-sec-appeals-dim-xrps-outlook/